AI stock wipeout sends S&P 500 tumbling over 3%
The gist
The S&P 500 fell 3.2% as Nvidia dropped 8.3% and AMD 15.9% in an AI stock selloff.
The drop is tied to midterm wins by Democrats and worries about data-center construction.
How it unfolded
- Oct 30, 2026Tech stocks plunged, putting the Nasdaq 100 on course for a more than $1 trillion drop at the opening bell; Amazon fell 7% and Intel plunged 26% after quarterly earnings failed to reassure investors.
- Nov 3, 2026Goldman Sachs trader Bobby Molavi said 60% of the S&P 500 was in bear market territory even as the index sat within about 3% of its latest record high.
- Nov 4, 2026The Dow jumped 1,570 points, or 3%, its best one-day performance since April 9, 2025, after midterm election results.
Key terms
- S&P 500
- A stock market index tracking the performance of 500 large US companies listed on American exchanges.
- midterm elections
- US general elections held near the midpoint of a president's four-year term, when all House seats and about a third of Senate seats are contested.
- Nasdaq composite
- A US stock market index that includes almost all stocks listed on the Nasdaq exchange.
Source: Wikipedia